Natural resource dependence theory: Impacts of extreme weather events on organizations

Building on the natural resource dependence theory (NRDT), this analysis represents the first comprehensive investigation on how extreme weather events affect financial performance. The Qualitative Comparative Analysis builds on 38 expert interviews taking place predominately at small and medium-sized organizations from various industry sectors in South-East Germany, and relates those results to financial data. The analysis reveals organizational dependence on the number of affecting extreme weather events to the potential of generating positive financial performance. Hence, organizations whose business seriously suffer the impacts of extreme climatic elements cannot generate positive sales growth. By testing the NRDT, this analysis contributes to management science by examining one of the most challenging environmental risks: climate change.